Westminster Group signs 20 year MoU over Middle East border security

Westminster Group has signed a memorandum of understanding over a 20 year border security project in the Middle East.

It said on Monday the project will involve the provision of equipment, training and ongoing maintenance of security screening checkpoints at an import border crossing within the Middle East.

It will provide advanced screening, monitoring and detection systems that will significantly speed up the crossing process whilst maintaining a high degree of security.

Westminster Group will generate revenue from a security charge on vehicles and containers passing through, with minimum revenue guarantees provided by authorities.

Chief executive Peter Fowler said the deal follows several important long term MoU's signed in the last few months.

"Whilst there is of course no certainty as to timing or the final outcome of these or any of the project opportunities in progress we believe the number of long term, large scale MoU's now in play, any one of which provide significant revenue opportunities, and the momentum we are seeing together with the current focus on security worldwide is encouraging.”

The news came as the AIM-listed company signalled that revenues for the year to 31 December 2015 are expected to be approximately £3.4m.

In a trading update, it highlighted Technology Division sales were higher overall due to larger product sales in the first quarter of the year, while Managed Services revenues were lower than 2014 due to the impact of Ebola.

It also flagged that the vessel for its 21 year Sierra Leone Ferry service contract is close to being operational.

However, it said that the delays in the start of the service, which was meant to be in July, have cost the company though significant lost revenues.

“Whilst these delays are frustrating, the economics of the operation should allow it to generate cash on a relatively small market share when the service commences and this should improve with the recovery from Ebola,” Westminster Group said in a statement.